Make-whole payments are generally triggered when creditors are repaid early to compensate them for the present value of foregone interest. The EFIH first-lien bondholders are negotiating in hopes of enforcing the payment if the bonds are refinanced, said two of the people close to the matter.
The likelihood of getting a deal done remains uncertain, with sides still far apart on key issues, the people said. And, to be sure, EFH does not need any creditor support to file for bankruptcy, though having it would reduce the uncertainty of what would be a large and complex case.
Ideally, the company would also like the support of other bondholders at EFIH. But holders of EFIH payment-in-kind notes already walked away from talks, and the second-lien bondholders are currently not restricted from trading, which limits the substance of any discussions they may have, according to two of the people close to the matter. (Reporting by Nick Brown, Michael Erman and Bill Cheung in New York)
- Link this
- Share this
- Digg this
- Email
- Reprints
0 comments:
Post a Comment